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City sets budgetary impact of COVID-19 at $24.3 million for 2020

Mitigation measures and reduced expenditures will save $14.3 million, for a net impact of $10 this year
20160201 Guelph City Hall Sign KA
GuelphToday file photo

The financial impact of the pandemic on the City of Guelph this year is now expected to be $24.3 million, says the latest city update.

A staff report heading to a special meeting of council Wednesday at 2 p.m. says the city has been able to contain costs to the tune of $14.3 million, resulting in a net budget impact in 2020 of $10 million.

The $24.3 million includes a projected $20.7 million in lost revenue and $3.6 million of additional costs incurred in response to the pandemic.

The $14.3 million in savings come from halting discretionary spending, layoffs, pausing non-critical hiring and reducing service levels and program offerings.

Lost revenues include just over $8 million due to free transit rides, $2 million for waiving parking fees and $6.1 million from cancelled parks, recreation and library programs.

The waiving of interest and penalties for property taxes cost the city $781,000.

The report says the financial picture is based on current Public Health guidelines and does not include any announced emergency financial relief from other levels of government.

That emergency funding is essential, the city says, if service levels aren’t going to be affected.

“The City is realizing every opportunity to create budget savings in 2020 to offset this mounting impact. However, without further impacting service, there is only so much that can be done,” it reads.

“Staff are currently assessing these impacts as they develop the 2021-24 budget to ensure appropriate adjustments for permanent revenue impacts and enhanced cleaning and safety requirements are included,” the report says. 

The report does take on a positive tone when discussing future opportunities.

“We have a unique opportunity to rethink transportation, mobility and public space. With a renewed look at our current master plans underway, staff feel Guelph can emerge from COVID-19 with a stronger and safer approach to mobility and improved open space systems,” it says.

The report also says the city is “reflecting and preparing for a second wave of COVID-19, which many experts say is inevitable.”

The report is the fifth and final monthly report on managing the impacts of the pandemic.


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